HELSINKI: Finland’s economy will shrink by 0.4 percent this year, the Finnish government said yesterday, revising downwards its forecast from March which predicted growth of 0.4 percent.
A report from the economy ministry said the expected slowdown was mainly due to the “economic situation in the eurozone” and “weak growth in global trade.”
The ministry said it expected the economy to pick up around the end of the year, and predicted gross domestic product (GDP) growth of 1.2 percent next year.
Because of its sluggish economy, Finland is approaching the limits of the Maastricht criteria which state that public debt must not exceed 60 percent of GDP and the public deficit must not exceed three percent of GDP.
The government expects a public debt of 57.1 percent in 2013 and 59.2 percent in 2014. The public deficit is forecast to reach 2.5 percent this year.
AFP
